Setting Up A Subway Franchise Marketing Essay

Setting Up A underground licence Marketing EssayMy idea is to sterilise up an naturalized immunity. gum olibanum a underground Franchise. My decision was ground on the idea that in that berth is a gap in the nutrient commercialize for this particular telephone circuit curiously in the S offh Norwood bea. The only well kn birth sandwich firing is subway system and although it is already a well-established b portion name, I believe that in the correct location my own livestock impart start come on the authority to conciliate a lot of profit and survive. My communication channeles unique sell floor volition be natural endowment my clients the choice to choose which fillings or signs of breads they worry to wipe away for their sub. There ar nearly two million divers(prenominal) sandwich combinations avail equal to(p) on the subway menu. This flexibility do break in the customer their engineers and we exit gain the trueness.I believe that in th e correct location my own electron tube license result way out(a) the potential to make profit and survive. I testament be resultant roleing the forefront Is it feasible for Subway to expand by establishing a secondment sandwich outlet in Central Croydon.It is a well- jockeyn brand but in the UK non m all(prenominal) customers atomic number 18 beaten(prenominal) with this established name. I give make sure these potential consumers know it. I plan to do this by makeing an chance in the securities industry and if on that height is a gap. I plan to use forecasts to let on whether my line of products entrust be reachmentful such as cash extend and break-even. exploitation finance getable it pull up stakesing help me to launch an excellent franchise luck. I f etcetera found out Subway is one of the trump out franchises to set up and a number one entrepreneurial opportunity. patron be on this, as at that place is a gamely agonistical grocery store t hat my stage wrinkle would obtain to enter, having a brand that consumers trust and identify al menial for jumper cable the sandwich bar gaining a stable market share, and loyal customers in a short space of cartridge clip, and as well some of the risk result be reduced.Overall, buying into a franchise enables entrepreneurs manage me to have an opportunity to stick out a known product from an established brand with a proven operating system already in place.Projects Aims ObjectivesAims are the long-run intentions of a job while the objectives are wishinged to fulfil these overall aims of a moving in. The of import aim of this project is to conduct a adequate feasibility study in assure to evaluate whether or non my business entrust be successful or non. If my business is liable(predicate) to fail I would like to assess what figures resulted in this failure and in turn what factors resulted in its success. If it is non feasible hence at the shutting of my p roject I would like to draw some sort of outcome approximately what could have been done to make my business much to a greater extent(prenominal) successful especially in the case that my business fails. Despite macrocosm a franchise and a well-known brand in raft of my potential customers, this feasibility study could endeavour failure and from there I could steady down what actually could have been enhanced.If it does prove to strive to success, I volition be able to identify the best place to set it up, what products to market consumers requirement/indigence and at what price. Moreover, I would like to assess what factors resulted in the failure of my business, and what factors contributed to the success of my business, and at the end of the project evaluate what could have been done to improve the business universe a success.By doing this I will look into what makes a business strive into success, such as location, the competitors, products to be aimed at potential cus tomers and whether there is actually a rent in the market for a well-known franchise as this. discipline will be retrieved through primary and secondary sources and research. I assign to use primary research in orderliness to identify, commensurate locations, incumbent prices of my topical anesthetic competitors, products that are needed and wanted by consumers in the market, the compensate promotional methods in order to depict potential consumers and to establish the coffin nail market. In addition I shall use secondary research to point out out statistics on close to products sold/brought, the period of metre in which consumer expenditure is at its highest, and where and any knowledge retrieved by competitors on consumer spending patterns within the market, or successful marketing strategies. All project results will be apply to determine and evaluate my project and stomachup final examination decisions. I will need to remember that I will need long-term profit in order to survive.Business Aims ObjectivesAims should be an brass of all parties of the business, i.e. employees, share incurers. The set aims should be long-term and everyone within the sign of the zodiac should black market to achieve them. Aims fecal matter encourage commitment within a firm, i.e. giving employees a long-term job within the firm. Most firms do not spend quantities of time on trying to define their aims, particularly unbowed of small firms where communication levels are quick and easy to transfer information such as my firm Subway. Aims are a basis in which I will set my objectives. These raft be influenced by the business culture and the workforce culture.Delegation undersurface take place, in order to allow different departments to focus on different aims. This allows outline of the success of the objective easier. My aims are offer fibre products at a competitive price.Bridge the gap mingled with social classes by giving everyone high classed prod ucts.In co-operate consumers feign and wants in products.Increase consumers value of living.Turn extravagance products into necessity products due to high quality and the purpose/function to the consumers.Produce a profit making business.Design a company whereby customers rejoicing is achieved and a friendly service is offered.Primary ObjectivesWill the refreshed Croydon install prove to be adequate in all areas, but nigh importantly will it be profitable, to a sufficient level of return?Secondary ObjectivesCollect the previous years accounts and financial reports for Subway, and evaluate the bring in situation.Investigate whether there is land procurable to expand its property.To obtain marketing data.Find out the start-up costs and sign investment for the outlet for expansion.To shift the business.Using the retrieved raw data, produce forecasted accounts and evaluate the firms financial position in the future.Decide whether a change in price is needed or adding or remov ing of items is needed to the existing menu.Assess the time scale of the expansion. methodologyExamine existing accounts of the business to whether the firm has enough capital for expansion. I am going to do this by driveing out the profitability, fluidity and the efficiency of the firm utilize ratio summary from the Trading get and Loss account and the remainder Sheet.I will mold out using an appropriate web put, where I want to fan out the outlet. This will high lighten all the surrounding investment companys and va locoweedt properties. I will use this as a basis to chance a vacant suitable site for the bare-ass Subway restaurant. Once an appropriate site is chosen, I will choose whether to lease or buy a free hold property.I am going to prepare a questionnaire for the customers punishing the eating place and do a survey of the large number in the area to find out their views about the recognised brand name Subway and whether the come in market for the product is a imed confidently to the correct consumer market.Retrieve information from the Subway website on costs that will be needed to be incurred, such as the start-up costs and initial investment.Investigate the ways in which the business can diversify, for example introducing former(a) types of catering services such as catering for special occasions.To forecast the firms Trading Profits and loss account. Balance sheet and cash flow forecast if the restaurant was to expand. By using Ratio analysis, I intend to analyse the firms financial position in the future.Upon my findings in my questionnaire I will decide whether extra items should be added to the symbolize menu.Using Decision-Making Techniques such as decision trees and critical path analysis to help reach a decision and estimate the minimum time that could be interpreted to complete a possibly problematic process. thrill StatementThe main objective of a mission statement aims to set and/or tell, stakeholders and shareholder of what the overall purpose of the business is. This involves stating what the business intends to achieve and sets the theme for setting objectives and strategic methods. It shows the businesses reason for existing wherefore it has been set-up in the first place its intentions.However, in the likeliness of setting a exacting and achievable mission statement, a criterion has been set for business to follow. quick-witted (smart, measurable, agreed, realistic, time specific), allow businesses o analyse the mission statement and to bump how success full it would be. As a general not the companies overall mission statement would be to turn over the biggest and best-value store in the market. delegacy statements shows the businesses reason for existing, why it has been set-up in the first place (intentions). Existing Subway missionary statement To provide the tools and knowledge to allow entrepreneurs to successfully debate in the Quick Service eating house industry world(a), by system atically offering value to consumers through providing great tasting nutrient that is life-threatening for them and do the way they like it.SWOT analysisThis is a tool, which is apply to review internal and away business environments. The benefit of doing this is to assess the businesses underway activities and base decisions on them. It is an effective way of identifying my Strengths and Weaknesses, and of examining the potential Opportunities and Threats my business index face. By carrying out an SWOT analysis and using the SWOT manakin it will help me to focus into areas where my business will show strengths and where the greatest opportunities lie.My strengths are any resources and capabilities that can be used as a basic for developing a competitive avail over other(a)(a) sandwich outlets.StrengthsBeing a small sole trader franchise compresseds that I will have a closer birth with the customers, thus receive ideas and build a personal relationship with them. where fore begin to build a loyal customer base. Eventually I can promote and adapt my products to the needs of the consumers.I have a good location for my business that is easy to access and is viewable by consumers. Thus creating awareness for consumers to come in and purchase a product. chip in competitors, which have identified consumers spending habits. Makes it easier to establish a business whereby, their needs and wants are already aware.A market-led business that is dedicating to consumers means that you will be giving the consumers what they need, which would make them, happier-delighted. Ultimately, returning back for to a greater extent(prenominal) purchases.An excellent global paper in place means a long trading period could be portrayed. Finding a trustworthy supplier is guaranteed, psyche who is willing to take a chance on a new established franchise.My Weaknesses are anything, which cannot be overwhelmd as strength, are things that the business would do badly, that it is ineffective at or that it has a poor reputation for.WeaknessesLow start-up capital- without capital, the business will find it toilsome to start-up and get loans to entrepot its strategies.No credit from suppliers- without credit, it may be hard to pay back debts and have money left over for re-investment into the business.I will have a small amount of rung, as I will not be able to pay for more than than I need, so when my staff are absent I will not have any form of backup for them.I have no aim in Marketing which means that I may not market Subways initial products effectively thus losing out on valuable profit, but also on customer loyalty if I market it imperfectly.My cash flow will be unreliable in the early stages of business, thus I will not have any chances to buy things if I image an opportunity for it.Opportunities are anything, which present an opportunity for profit and growth because of its strengths or because of the elimination of its weaknesses.Opportun itiesNew technology may cut down the time and improve the quality of my products.Company expansion, i.e. increasing capacity inside for eat in.To gain Market share by diversifying myself from other companies innovation of products and new product range.Increase demand for quality general-purpose products.Competition may be engrossed with rivalry amid each other that they dont take much notice in own growth.The introduction of speciality breads and more exotic fillings will extend the possibilities of the sandwich from a simple eat into a meal.Threats of a business arise from activities of competitors and from failing to take opportunities or to build on successes. Threats also come from complacency, a lack of rigour, and from locomote profits, perhaps due to rising costs.ThreatsEstablished, wealthy competitors. All fast pabulum chains, including McDonalds, Burger King, KFC, Pret A Manger, OBriens, and Benjys.Competitors enforcing new tactics to destroy new contention in which w e couldnt battle against due to low capital. For example lowering of prices, advertisement campaigns etc.A possibility of competitors using destroyer pricing. In which we would not be able to operate if we lowered costs any more.If my competitor starts a Price war I will not be able to compete, thus risk of losing customers or falling into bankruptcy.Lack of trained, specialised employees. sac in consumer tastes will mean that I will need to transform my product selling to fit there needs.There is always a chance of new competitors trying to take some market share.Furthermore, I realise that by having so many opportunities and no experience I can easily make the wrong choice, which could lead to huge opportunity costs. Moreover, virtually of the opportunities identified to me, are also identified to my competitors, and because they have more capital, and even greater customer loyalty, being able to take receipts of these opportunities will prove difficult.Lastly the weakness of n ot having any experience means that making decisions will be hard, and being able to counterbalance to competition actions would be difficult or even futile.As a result of my SWOT analysis I come to the conclusion that continue with the business idea would be unpractical, but with a lot of hard work and luck, the firm may be successful, however not enough to compete with competition such as Pret A Manger or Burger King but surviving to some extent.PESTLE AnalysisThis examines the external environment and the global factors that may hazard a business. It can provide a quick and visual representation of the external pressures facing a business, and their possible constraints on strategy. It is usually divided into five external influences on a business- political, economic, socio- pagan, technological and green. The analysis examines the impact of each of these factors and how they interplay with each other in the business. The results can then be used to take advantage of opportun ities and to make emergency plans for threats.PoliticalIt magnate include a contemplation of polity, such as consumer laws, regulation, such as control of certain companies, political pressures and the government view of certain activities.Factors that could affect are Government legislation such as taxes on products and interest rates. This will affect the business when determining the selling price of the products. In order to make a profit after taxation, the price will have to be increase however the price must also be appealing to the customer and rival that of your competitor. Healthy and safety legislations will have to be taken into account especially since my business deals with food. Improving the health and safety rules jibe to the regulations set by the franchise would do this.EconomicalThis might involve the analysis of a variety of economic factors and their effects on business. They might include consumer activity such as spending patterns, economic multivariate s such as inflation, and government policy such as exchange rates. These areas are global, but it is also important to look at factors affecting my own industry. Economic issues are the focus of future potential of profit making. This can involve the level of demand and the price in which the product will be sold for. This needs to be compared with other organisations prices in order to lure consumers. Despite the fact that this is a franchise and costs are already set up, if however the cost of floor rises, then for my firm or other food retailers the price of floor is a all-important(a) economic measure as without it we cannot make our product and sell them at a cheap price.The actual employment rates have increase in the past few years due to economic factors. non only does this suggest that I have a wider selection for recruitment, being able to choose the most multit rented workforce. I also have the electronegative effect that money consumers are without money and are unabl e to spend. This can be a decrease in sales of the whole market, and competition will blend in fierce in attempt to get loyalty from remaining consumers. In addition exchange rates can affect my business if deciding to import goods form abroad, or basing the factory in overseas. This can easily increase cost and promote a course back to the United Kingdom.Laws on competitive pricing, patterned ideas and quality standards can all affect the way in which my business is run. These laws can encumber the companys expansion and take longer than expected.SocialSocial factors I must examine are consumer attitudes to my product industry, environmental issues (e.g. organic food versus food made in a lab), attitudes to health, wealth and age (the elderly dont want to be treated different from others). Added complications when looking at social and cultural factors are differences in ethnic and social groups. Not all groups have the same attitudes and this impacts how they view products an d services. E.g. Muslims eating pork. in any case the fact that Muslims eat proper would affect my business because meat that is sold at Subway is ready normally and not using the traditional Halal method. Thus, I will lose sells on these major respectable and cultural groups. However, another factor to consider is that location is dependent on the amount of customers I lose, if there are many Muslims in the area then sells will decline, if not many I will benefit on other ethical groups buying my products. Therefore location can s work on play a part with profit, especially to my target auditory sense.TechnologicalThis might involve the analysis of a variety of economic factors and their effects on business. They might include consumer activity such as spending patterns, economic variables such as inflation, and government policy such as exchange rates. Fixed and variable costs of the business and the effect of changes in product and labour markets. otherwise economic factors include income growth, debt saving levels (which impact available money) and consumer business confidence. change magnitude security methods may include real-time CCTV cameras and hidden cameras around the store to reduce pilferage this can be mainly located by the shatter tills, as it is highly likely consumers could cause nuisance around these areas. intersection methods may introduce, faster production, meaning products are out in the market much quicker and a cheaper price. In addition quality is not sacrificed. Production methods will make producing quicker and possible with a high quality level. Giving way to the innovation of products. Although with this new advancement I will need staff that can use it e.g. EPOS till ware and also the capital to by and or train people to use it. Green issues involve the interest of the organisations and its interaction with the environment. We need to monitor lizard how we treat the environment with production methods especially, in order to comply with the current laws.Target AudienceThe SUBWAY chains target market is adults between the ages of 18 and 49 who eat quick meals and are looking for good-tasting elections. Also, the SUBWAY chain wants to increase its consideration set among frequent fast-food consumers who lead an active voice lifestyle and are forecastking a balance of nutrition, taste, and value. The target audience is an important factor when setting up my business, as I will be confideing on this to make my business a success.My business is a sandwich store that sells food, food is one of the five basic needs and this means that everyone needs food in order to survive. Although this is the case it doesnt mean everyone will eat the food that I will provide. For example upstart children will not come to my shop to eat large subs so therefore I will need to attract them by selling them a specially tailored kids meal containing simple food with everything inside. In this way I am maximizing my t arget range.Here is a plan about how I hope to attract other age groupsYoung Children I will be selling them the KidsPak consisting of simple food with a small sub sandwich with different choices of fillings called Deli-Style Sandwiches and a drink.Teens I hope to encourage teens to my shop by selling a sexually attractive variety of sub sandwich fillings of their choice, promoting certain menus such as 7 under 6 with less than 6 grams of fat. Also selling sugary desserts such as cookies.Adult I plan on promote adults who are fast-food consumers, who lead an active lifestyle and are check outking a balance of nutrition, taste, and value. For example a great choice of salads for those who are reflection their calories. Healthy, nutritious meals for those who are health conscious will be available rather then going to stores where fast-food is full of fat such as McDonalds. If they want to eat something during their break at work, a quick meal is available at Subway.Business Stru ctureI choose to do a privately held franchise as all Subway outlets are franchised and there are no company-owned units. I feel my business will face less risk if I open a franchise. I can benefit from a Subway experience and enjoy it. I feel my enthusiasm will reflect upon my customers. Another reason why I have chosen to open a franchise into Subway is that in the US it has been voted franchiser of the year by Entrepreneur magazine in all categories, in the past 11 years out of 15 years. Despite that it is the fastest growing franchise in the world (see appendix) with an estimated 25,000 stores worldwide in 2005, bearing in mind that in year 2000 there was only 14,662 stores. Now Subway has beaten the number McDonalds outlets in the US, which is dumbfounding and the main headlines. With people like Jared who has made Subway even more successful by eating a diet only based on Subway, he has gained his desired weight and distributed what his diet consisted to the public, making Su bway even more profitable. From this enormous approval, hundreds of children have decided to improve their quality of life by adopting healthful habits.I have chosen to become a sole trader, because I think it is the best option in my position. I feel I havent enough capital and experience to become a private limited company, and this option is not really open to me if I were go into a franchise. I like to run the business to my satisfaction, and this reflects my decision to open as a sole trader.Market questionPrimary Research inquirenaire as primary research is a lot cheaper, as I am only starting up a business and will not have a lot of capital. tall(prenominal) to justify bank loan for primary research and can be a waste of money. I will not send any questionnaires out to people as may not receive them back. I will actually approach people in certain areas and ask them questions myself. Means I will get a straight reaction rather than bias and have full concentration of inte rviewee.Analysis of interrogationnaire forefront 1- What gender are you?It is essential to know the gender of the person to be intimate which one visits the restaurant the most. It will allow me to establish the target market or audience. I can find out trends such as whether more males or females enjoy eating sandwiches. From this I can support more on that particular target market determined.Question 2- In what age range are you?Age would be essential to see whether children would purchase a kids meal that is available at Subway. If I know this, I can effectively cater my advertize to them. From this it will give me a clearer picture of the answer or else of a biased or narrow one. Asking this question will allow me to find out what the target market is. From the established franchise Subway, it mentions how the target market is adults between the ages of 18 and 39- specifically students and families with young children.Question 3- Which borough do you live in?I need to know which borough the potential customer is living to find out if the Subway franchise would best be located in a borough where people know what a Subway Restaurant is. This will increase sales to those potential customers who are loyal to this well-known brand. This will enable me to find out how far they live from chosen location and if their answer will have valid information. There is no point locating my Subway in an area where most cannot reach or locating it where customers have never perceive of a Subway brand.Question 4- Have you ever heard of a Subway Sandwich Restaurant?Obviously, in this question I will be able to find out if the customer actually knows what a Subway is and whether they really need to carry out the other questions relevant to the franchise. If they have ever heard of this franchise then they can refer to question 12 and to answer questions only on a basis of sandwiches and not to the franchise itself.Question 5- Have you ever visited one?This will ask wheth er they have visited a subway, as I need to know whether they are actually familiar with the franchises prices, meals available and food. This will give me an answer that is genuine and not made of assumptions and previsions. If the customer has visited a Subway then this question can be linked to answers requiring their knowledge of a Subway for example their favourite fillings that follows on from this question.Question 6- How often do you eat in sandwich disallow?I would need to know how often the customer eats in sandwich bars to meet demand. This will also help me decide how many times I can change special offers available in store depending on how much they visit the store. This along with the question about your age will help me to find out what type of person is able to travel to sandwich bars or my franchise on a daily basis. These people will be my main focus, who I will be promoting to, as these are the people who will be going to my shop a lot.Question 7- What opening hours should a new sandwich bar have?I would like to see which hours are preferable for the potential customer so they can visit it at their chosen time.Question 8 How much would you spend on a meal in a sandwich bar?This will allow me to allocate a price for a typical mediocre meal in Subway. I would also be able to see if consumers are willing to purchase high-priced goods. Or if they choose the option where they want to pay a low price. I will settle my prices based on this.Question 9 Which fillings do you prefer the most in your sub sandwich?Allow me to determine what is the most favourite filling to the customers choice and for me to determine which filling will be most in demand. Therefore I can stock up on the most democratic fillings ready for the huge demand. I can make sure there is enough supply, during the first few months. From my answers I can then use the fillings as a focal point when advertising to consumer. It will also help me find out which filling I will ne ed to buy the most of.Question 10 Would you like it to be a takeaway or eat in Restaurant?I would like to see whether readjustment for sitting in store needs to be provided or not depending on the results from the survey. From then suitable costs will be established on refurbishment of accommodation sitting.Question 11 Where do you find out special deals about Subway?If the potential customer has many responses to this question, I will then be able to promote deals in the first few months to attract customers to my franchise. Those special deals will be promoted in different ways in the advertising sector e.g.- leaflet drop-ins and newspaper. This question is to help me find out the best way of advertising. By finding out which of the existing methods used by Subway is the most effective. By doing this I will be able to use this method when advertising my business.Question 12- When buying a sandwich what places do you prefer to visit?This will help me identify my local competitor s. Those are stores that actually sell sandwich products e.g.- Greggs. I need to know the main reason why customers go to Subway to see whether they have actually heard of a Subway and have precondition a genuine reason not based on assumptions. By identifying the sandwich stores they visit, I can begin a list of my local competitors.Question 13- Why do you go to Subway, or any other sandwich store?I asked this question to give me a prediction of why people choose Subway over other competitors. Also whether the majority of my sales are based on impulse buying, something that businesses cannot rely on heavily to cover costs, or treats or groceries. Rather it will give me an angle to push my sale at e.g. if for impulse buying I will advertise snacks instead of heavy food.Question 14- Do you enjoy sandwiches as a healthy alternative from other detritus foods?This will allow me to reckon whether they really find sandwiches a healthy alternative to junk foods and if they prefer eating t his nutritious meal from burgers or pizzas. I would be able to see if sandwiches are a popular good to buy.Question 15- Are you vegetarian, or dont eat certain meats?My market is low fat in nature. If a lot of my customers are vegetarian, I can introduce no meat sandwiches. This goes the same for Halal meats. If I experience a low number of people eating meats, than instead of buying Halal meats, which are expensive, I can introduce more vegetarian meals to cater for there needs.16. Are you conscience about the amount of calories or amount of fat you eat?Although all my products are low in fat, this answer can help me to gain awareness. My pronouncing that my products are all low in fat, people who have answered this question yes, will seek out my product, because of its low in fat nature.RecommendationThese external factors that affect my business can have a positive effect, however, I believe in the short-term will have a negative effect. For example, in light of technological imp rovements, my business will need to have money, to take a